Please answer the following questions: Within the past decade, computationally-e
ID: 2763224 • Letter: P
Question
Please answer the following questions:
Within the past decade, computationally-enhanced toys have become a staple of children environments. In large part, this is due to the small size, robust operation, and low cost of embedded computing that enables electronic devices to be included within toys of all descriptions. Amazon has just created a toy called the Amazon Bear, which can read books, play music, and interact with children. What is a good distribution strategy for amazon? How does this strategy help reach the target market of younger people/children?Explanation / Answer
Distribution strategy of Amazon and will helps to achieve the target.
Amazon realizes that the most important thing that customers want is the quick delivery of products they order. This is where Amazon’s extensive distribution system has come into play. Hence they move from books to salling toys. This does not include Amazon’s new “under-the-tent” strategy of using existing vendor warehouse space for consumer-packaged goods to more quickly serve customers. Their aggressive strategy of infiltrating warehouses and improving their distribution lines brings Amazon to new areas and customers.
Amazon had created a deep & structured network which would help to build and promote the toys selling and in order to make the product available at remote locations that too free of cost delivery charges up to certain limit. Amazon has developed an extensive global distribution network that continues to grow at frenzied rate.
Brand equity in the Marketing strategy of Amazon – From being merely an e-book provider to emerging as the toy seller is one of the unique Strategy. Amazon.com has steadily increased its spending on advertising and promotion to make its brand stronger and have a higher brand equity. “A brand for a company is like a reputation for a person. You earn reputation by trying to do hard things.
Competitive analysis in the Marketing strategy of Amazon's toy selling –Short listing the competitors of Amazon depends on what business sector of Amazon is being considered. Apple would be the largest competitor when considering book or content related delivery such as books, movies, magazines, and audiobooks. The itunes store will always be a threat to the amazon store because of Apples devices like the ipad, iphone, and Macbook. When considering web services Google would emerge as the largest competitor.
He has also considered its competetors move while developing this strategy and hence developing countries as well as in developed, there are many local portals which give tough competition to Amazon. For example – Snapdeal, Flipkart are some of the competitors of Amazon. Similarly, groupon, first cry are specialised e-commerce portals which take away traffic from Amazon. Thus, these local competitors of each country also react strongly to Amazon’s presence.
Market analysis in the Marketing strategy of Amazon- The global E-commerce market is still in the evolving phase. With the adaptation of technology in the developing economies customers are now becoming more comfortable with online shopping. Fierce competition from Biggies like Alibaba, Ebay, start-ups & local ecommerce players like Flipkart, Snapdeal is more of resulting into overall growth of the industry which is good for the industry.
Customer analysis in the Marketing strategy of Amazon- Amazon customers consist of upper & middle class social groups who have inclination towards using E-commerce portals and are comfortable with online shopping. Majority of the customers are professionalsor businessmen who are busy with their business/Job & find it convenient to purchase anything online rather than visiting the physical outlet in order to save time & money. Furthermore, the customers might also be the ones who are searching for deals. Due to this, the portal is known to have specific days where they give massive discounts to their buyers.